One Hedge Fund Bets That Tesla's Bonds Might Be Too Expensive

The transcript discusses the recent performance of bonds, particularly Tesla's, which have been trading above par for the first time since 2017. Concerns are raised about the bonds being overvalued, and the potential for refinancing is explored, depending on market receptiveness. The discussion includes an analysis of bond ratings and yields, highlighting the low coupon rates for Tesla's bonds compared to historical standards.

What is the significance of the bond trading above par?

What does the term 'fair value' refer to in the context of bond trading?